{
  "url": "https://openlegislation.uk/authorised-unit-trust-scheme-investment-and-borrowing-powers-regulations-1988/regulation-5",
  "json_url": "https://openlegislation.uk/authorised-unit-trust-scheme-investment-and-borrowing-powers-regulations-1988/regulation-5.json",
  "legislation": "uksi/1988/284",
  "legislation_title": "The Authorised Unit Trust Scheme (Investment and Borrowing Powers) Regulations 1988",
  "legislation_url": "https://openlegislation.uk/authorised-unit-trust-scheme-investment-and-borrowing-powers-regulations-1988",
  "path": "regulation/5",
  "kind": "regulation",
  "number": "5",
  "heading": "Duties of manager and trustee to avoid breach of investment limits",
  "text": "(1) The manager shall take all reasonable steps and exercise all due diligence to avoid the property of the scheme being used or invested in contravention of whichever is applicable of regulations 8 to 16, 21, 22 or 24 to 30.\n(2) Subject to the provisions of paragraph (4), the manager shall take all reasonable steps and exercise all due diligence to avoid the property of the scheme being invested in contravention of whichever is applicable of regulation 17, 18, 20 or 23.\n(3) Subject to the provisions of paragraph (4), the trustee shall take all reasonable steps and exercise all due diligence to exercise such degree of supervision over the manager’s operation of the scheme as is appropriate with a view to ensuring that the manager fulfils the duties imposed on him by paragraphs (1) and (2).\n(4) The manager shall not be subject to the duty imposed by paragraph (2) and the trustee shall not be subject to the duty imposed by paragraph (3) insofar as it relates to the manager’s duty under paragraph (2) during whichever is the shorter of the period of six months beginning with the first date after the scheme is authorised on which persons are invited to become participants in the scheme and the period beginning with that date and ending on the first date on which the value of the property of the scheme exceeds £1 million, but the trustee and the manager shall each take all reasonable steps and exercise all due diligence during whichever is shorter of those periods to ensure that the property of the scheme is invested with the aim of spreading risk and in a manner which is consistent with the manner in which the property must be invested at the end of the relevant period.\n(5) In the application of paragraph (4) to a scheme which is treated as an authorised unit trust scheme by virtue of paragraph 9 of Schedule 15 to the Act, references to the date on which persons are invited to become participants in the scheme shall be construed as references to the date upon which it became authorised under section 17 of the Prevention of Fraud (Investments) Act 1958 or, as the case may be, under section 16 of the Prevention of Fraud (Investments) Act (Northern Ireland) 1940.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "1958 c. 45."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "1940 c. 9 (N.I.)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1988/284/regulation/5",
    "retrieved_at": "2026-10-29T16:11:24.323440+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}